Case The Formula 1 constructors

Study Mark Jenkins

This case describes five periods of dominance by firms in a highly competitive technological context.
Formula 1 (F1) motorsport is the pinnacle of automotive technology. Highly specialized constructors
design and build single seat racing cars (and sometimes power units) to compete for annual champi-
onships which bring huge financial and reputational rewards. The case study explores five contrasting
companies in different time periods in terms of how they both created and lost the basis for sustained
competitive advantage.

There have been 10–14 race car constructors compet-

ing in F1 at any one time. In 2021, there were ten, the top
four teams were Mercedes AMG F1, Red Bull Racing, Fer-
rari and McLaren all medium-sized businesses turning over
between £200 and £350 million per annum. The top teams
would typically have their own testing and development
equipment, which would include specialist wind-tunnels
and simulators. They would employ around 1,000 people
in their F1 chassis operations and around 300 working on
the power units, some of whom travel around the world
attending Grand Prix every two to three weeks from March
to December. All the teams would have highly qualified
Source: pbpgalleries/Alamy Images. technical staff that would include race engineers (who
work with the driver to set up the car), designers, aero-
For the most part, it's just commerce, but between dynamicists, composite experts (to work with specialised
two and four on a Sunday afternoon, it’s still a sport. carbon-composite materials) and systems specialists.
In addition to sponsorship, revenue is generated by win-
Frank Williams, Managing Director, Williams F11
ning championship points. This is a way of distributing the
In 1950, the Fédération Internationale de l’Automobile (FIA) royalties earned from media coverage and other revenues
established the Formula 1 (F1) drivers’ world championship. negotiated, on behalf of the teams by the Commercial
The first world champion was Italian Giuseppe Farina, driving Rights Holder: Formula One Group (FOG). It is estimated
an Alfa Romeo. In 1958, they added the constructors’ world that between 10 and 50 per cent of a team’s revenue could
championship to recognise the most successful racing team. By come from FOG, depending upon where they finished
the mid-1990s, F1 had become a multi-billion dollar business in the constructors’ championship the previous year. For
where purpose-built cars were developed through leading- 2021, new regulations came into force intended to cap the
edge technology to win a sporting event that enjoyed the expenditure of the F1 teams. In reality, this is only likely to
third highest audience in the world, surpassed only by the directly impact on the budgets of the larger teams and so
Olympics and World Cup Soccer. In 2020, the audience was has the potential to equalise the resources of the teams
estimated at over 500 million, with a total TV viewing figure over the next few years. Furthermore, F1 itself has stated
of 1.5bn;2 this was down on 2019 with a figure of 1.9bn, but that it will become a net zero carbon sport by 2030, a tar-
this was due to the number of races being reduced in 2020 get that will require significant investment and innovation,
(from 21 to 17) – a consequence of the COVID-19 pandemic. if it is to be achieved.
The 2021 season saw a record number of 22 races with 23 In F1, the pace of change and the basis of advantage is
planned for 2022, including new races for Qatar and Saudi constantly changing. The remainder of the case considers five
Arabia. More races equate directly to more revenue. How- periods of competitive dominance in chronological order:
ever, concerns have been expressed related to the well-being McLaren 1988–91; Williams 1992–4; Ferrari 1999–2004; Red
of staff in dealing with increased travel demands. Bull Racing 2010–13 and Mercedes AMG F1 2014–21.

1
Quote taken from Roebuck, N. (1992). ‘Frank Williams: The Enthusiast Turned Realist’ The Independent, Sunday, 12 July (no record of
page number).
2
https://www.formula1.com/en/latest/article.formula-1-announces-tv-and-digital-audience-figures-for-2020.3sbRmZm4u5Jf8
pagvPoPUQ.html [accessed: June 2022].
584
 The Formula 1 constructors

McLaren and Honda domination in either less skilful or less experienced than the lead driver.
the late 1980s This approach reduced competitive tensions between the
drivers and their respective engineering teams. However,
Founded by New Zealander and F1 driver Bruce McLaren McLaren appeared to feel that they would be able to deal
in 1966, the McLaren team had their first victory in the with any issues which such an arrangement could cause.
Belgian Grand Prix of 1968. Tragically, McLaren himself Senna was fast, determined and ruthless. Prost was also
was killed two years later in a testing accident. Lawyer fast, but a great tactician and adept at team politics. It was
and family friend Teddy Mayer took over as team leader rumoured that Alain Prost was a key reason for Honda
and in 1974 secured a long-term sponsorship from Philip moving to McLaren.
Morris to promote the Marlboro brand of cigarettes. In In 1988, the Honda-powered MP4 car was the fastest
September 1980, Ron Dennis became joint team principal and most reliable car. This meant that the only real com-
with Mayer, a position that he took over solely in 1982, petition for Prost and Senna was each other. The tension
when Mayer was ‘encouraged’ by Philip Morris to take a between two highly committed and talented drivers
less active role in the management of McLaren. resulted in one of the most enduring and bitter feuds the
Dennis had been a mechanic for the highly successful sport has ever known. In 1990, the acrimony with Senna
Cooper team in 1966, but set up his own Formula Two culminated in Prost moving to Ferrari.
(a smaller, less expensive formula) team in 1971. By the Ron Dennis and his professional management style was
end of the 1970s, he had built up a reputation for profes- synonymous with the success of McLaren, indicating that the
sionalism and immaculate presentation. His Project Four era of the ‘one man band’ F1 constructor was past. His record
company brought in designer John Barnard who had since taking over in 1982 had been impressive. Dennis’s
some radical ideas about using carbon fibre, rather than negotiating and marketing abilities were legendary thro-
metal, as the basis for a race car chassis. These ideas were ughout Formula One. McLaren also created their own
to provide the basis for the MP4 (McLaren – Project Four) marketing consultancy operation where the smaller teams
car. Both Dennis and Barnard were perfectionists, with engaged them to find sponsors. In 1991, Management Week
Dennis’s obsession with immaculate presentation and had Ron Dennis on the front cover with the question: ‘Is Ron
attention to detail complemented by Barnard’s uncom- Dennis Britain’s best manager?’ Dennis likens the manage-
promising quest for technical excellence. ment of McLaren to that of a game of chess: ‘. . . you’ve got
In 1986, John Barnard left to join the Ferrari team. The to get all the elements right, the overall package, the budget,
partnership between Dennis and Barnard had been stormy, the designer, the engine, the drivers, the organisation’.3
but a huge amount had been achieved through the energy Dennis is renowned for being hyper-competitive and
of these two individuals; Dennis providing the managerial once chastised a driver who was delighted with finishing
and commercial acumen and Barnard highly innovative second with the comment – ‘just remember, second place
design skills. To replace Barnard, Brabham designer Gordon is the first of the losers’.4
Murray was recruited, perhaps best known for developing Dennis’s ambitions went beyond F1 and, in 1988, he had
the innovative ‘fan car’ for Brabham in 1978. Murray, like begun a project to build a road-going car, the McLaren F1.
Barnard, was at the leading edge of F1 car design. This mirrored the development of Ferrari who had made
A further factor in McLaren’s success had been their the progression from race cars to also develop road-going
relationship with engine suppliers. In the mid-1980s, turbo- cars. The McLaren F1 was launched in 1994 with a price of
charging became the key technology and, in 1983, they used £634,000 and top speed of 231 mph and instantly became
a Porsche turbo engine which was funded by the electronics’ the most expensive and fastest road car in the world.
company TAG. However, the emerging force in engine The McLaren Honda combination had dominated F1
development was Honda who had re-entered F1 in 1983 in from 1988 through to 1991, and it was difficult to see
partnership with Williams. Importantly, the engines were what more could be achieved. In September 1992, Honda
supported by a significant commitment from Honda in both confirmed that they were pulling out of F1. Dennis had
people and resources. Honda used F1 as an opportunity to been told about Honda’s thinking earlier in the year, but
develop some of their most talented engineers to transfer it appeared that he hadn’t taken it seriously and the team
F1 design and development capabilities to their production had no real engine alternatives. This meant they lost valu-
cars. In the mid-1980s, the Williams/Honda partnership was able winter development time as they tried to find a new
very successful, but following Frank Williams’ road accident engine supplier. In 1993, they competed with Ford engines
in 1986, Honda began to have doubts about the future of which were available to any team who had the cash to
the Williams team and agreed to supply both McLaren and buy them. Senna’s skills still gave McLaren five victories,
Lotus for the 1987 season.
In 1987, McLaren announced that they had recruited 3
M. Jacques and D. Robson (1995) ‘McLaren Lose the Key’.
two of the top drivers for the 1988 season: Alain Prost Independent Magazine. 14 July. P. 19.
and Ayrton Senna. This was unusual; most teams had a 4
A. Henry (1998) McLaren: The Epic Years. Yeovil, Somerset:
lead driver being supported by a ‘number two’ who was Haynes Publishing. P. 179.

585
The Formula 1 constructors

despite having an uncompetitive car. However, at the end Further success occurred in 1986/87 with Williams
of 1993, Senna left the McLaren team to move to Williams, taking the constructors’ title in both years. This was
whom he saw as having the superior car and engine com- despite the road accident in 1986 which left Frank Wil-
bination. Former world champion Niki Lauda saw this as liams quadriplegic and confined to a wheelchair for the
a major blow: ‘Senna was a leader. He told them exactly rest of his life. However, 1988 was Williams’ worst sea-
what was wrong with the car. Hakkinen (Senna’s replace- son, with Honda having switched to supplying McLaren
ment) is not in a position to do that, so the reaction time is they were forced to use uncompetitive Judd V10 engines.
much longer. Senna motivated the designers.’5 Williams didn’t win a single race, and McLaren won 15
The mid-1990s were a particularly difficult period for out of the 16 Grand Prix of 1988; a disillusioned Nigel
McLaren. Having tried Peugeot engines in 1994, they Mansell moved to Ferrari. Frank Williams had to search
moved to Mercedes in 1995. Mercedes had been consider- frantically for a new engine deal which he found in 1990
ing a major commitment to F1 and, in 1995, they concluded with Renault. This relationship became a far reaching and
a deal involving an equity stake in both McLaren and in durable one, with Renault putting human and financial
specialist engine builder Ilmor (which they subsequently resources into the project with Williams. They also sought
purchased) who were to build the Mercedes F1 engine. to develop the relationship further by running their team
for the British Touring Car Championship, and also engi-
Williams and the technological neering input and the Williams name for a special edition
of the Renault Clio.
revolution: the mid-1990s
In 1991, Nigel Mansell was persuaded to return from
Like a number of the founders of F1 teams, Sir Frank Williams retirement and narrowly missed taking the 1991 title
began as a driver, perhaps not of the same standing as Bruce but, in 1992, the team dominated the circuits, effectively
McLaren or Jack Brabham but, nonetheless, someone who winning the championship by the middle of the season.
lived and breathed motor racing. His desire to remain in the Nigel Mansell went into the record books by winning
sport led him to develop a business buying and selling racing the first five consecutive races of the season. However,
cars and spare parts and, in 1968, Frank Williams (Racing Cars) deterioration in the relationship between Williams and
Ltd was formed. A series of triumphs, tragedies and near Mansell led to the driver’s retirement from F1 at the end
bankruptcies led to the establishment of Williams Grand Prix of the year.
Engineering in 1977 when Frank Williams teamed up with The stable relationship between Williams and Head
technical director Patrick Head. Frank Williams’ approach and provided enviable continuity compared with the rest of
style owed a lot to the difficult years in the 1970s when he the field. Head’s designs had often been functional rather
survived on his wits and very little else, including operating than innovative, but he had always been able to take a
from a public telephone box near the workshop when the good idea and develop it further. These have included
phones were disconnected. His style could be described as ground effect (originally developed by Lotus), carbon-
autocratic, entrepreneurial and certainly frugal, despite the composite monocoque (McLaren), semi-automatic
multi-million-pound funding he managed to extract from gearbox (Ferrari), and active suspension (Lotus). The car
the likes of Canon, R. J. Reynolds and Rothmans. Williams development process was always a top priority at Williams
saw his role as providing the resources for the best car to be and Head was supported by many junior designers who
built. His long-standing relationship with Head was pivotal to then went on to be highly influential in Formula One, such
the team and brought together a blend of entrepreneurial as Adrian Newey, Ross Brawn and Paddy Lowe.
energy and technical excellence needed to succeed in F1. This focus on developing the car and engine combina-
The team enjoyed success in 1980/81 by winning the tion meant that the driver took second place in the Wil-
constructors’ championship both years with Alan Jones liams philosophy, despite the fact that a good test driver
winning the drivers title in 1980. Jones was a forthright was essential to the development process. There had been
Australian who knew what he wanted and was not afraid a number of high-profile disputes with drivers often attrib-
to voice his opinions. His approach to working with the utable to Frank Williams’ ‘masculine’ approach. In 1992,
team was very influential in Frank Williams’ view of drivers: Nigel Mansell left when his ‘number one’ driver position
was threatened by the recruitment of Alain Prost for 1993
I took a very masculine attitude towards drivers and (although Prost himself left the following year for the same
assumed that they should behave – or should be reason regarding the hiring of Ayrton Senna). A similar sit-
treated – like Alan. uation arose when the 1996 world champion, Damon Hill,
was not retained for the 1997 season. Patrick Head set out
Sir Frank Williams (quoted in Autocar & Motor,
the reasons for the decision not to hold on to Hill:
9 March 1994, p. 78)
We are an engineering company and that is what
5
M. Jacques and D. Robson (1995) ‘McLaren Lose the Key’. we focus on. Ferrari are probably the only team
Independent Magazine. 14 July. P. 19. where you can say the driver is of paramount

586
 The Formula 1 constructors

importance and that is because [Michael] Schu- made perfect sense given that, unlike most of the compe-
macher is three-quarters of a second a lap quicker tition, who outsourced their engines from suppliers such
than anyone else. as Cosworth and Honda, Ferrari designed and manufac-
tured their own engines. However, it appeared that these
Patrick Head (quoted in Sunday Times,
new technologies were effectively substituting superior
8 September 1996, p.14)
engine power with enhanced grip due to aerodynamic
Williams’ emphatic dominance in the 1992 season downforce and improved chassis rigidity.
was due to a number of factors: the development of the In 1986, British designer John Barnard was recruited
Renault engine was perfectly complemented by the FW15 to the top technical role, but was not prepared to move
chassis which incorporated semi-automatic gearbox, to Italy. Surprisingly, Enzo Ferrari allowed him to estab-
drive-by-wire technology and an active suspension sys- lish a design and development facility near Guildford in
tem. As summarised by a senior manager at Williams F1: Surrey: the Ferrari ‘GTO’ or Guildford Technical Office. It
seemed that rather than being a unique and distinctively
I think we actually were better able to exploit the
Italian F1 team, Ferrari were prepared to imitate the Brit-
technology that was available and led that technol-
ish constructors who Enzo had previously referred to as
ogy revolution. We were better able to exploit it to
‘garagistes’ or ‘assemblatori’. The concept of the GTO was
the full, before the others caught up . . . it wasn’t
that it would concentrate on the design of the following
just one thing but a combination of ten things, each
year’s car, whereas in Italy they would focus on building
one giving you another 200/300th of a second, if
and racing the current car. However, the fact that Barnard
you add them up you a get a couple of seconds of
was defining the technical direction of Ferrari meant that
advantage.
he became increasingly involved in activities at both sites.
Quote from author’s interview Enzo Ferrari’s death in 1988 created a vacuum that was
filled by executives from Fiat S.P.A. It was written into the
However, in 1993, the Benetton team made a great
contract between Ferrari and Fiat that, on Enzo’s death,
deal of progress attributed to the development skills of
Fiat’s stake would be increased from 40 to 90 per cent. This
their new driver, Michael Schumacher. Williams’ techni-
led to attempts to run Ferrari as a formal subsidiary of the
cal lead coupled with the tactical race skills of Alain Prost,
Fiat group. Barnard became frustrated with the politics of
supported by Damon Hill secured the 1993 world cham-
the situation and left to join Benetton in 1989. In 1992,
pionship and constructors’ championship for Williams F1.
Fiat appointed Luca di Montezemolo as CEO with a man-
1994 was a disaster, although Williams won the
date to take Ferrari back to the top. Montezemolo, who
constructors’ championship for the third successive year
had been team manager for Ferrari during the mid-1970s,
(this was always their declared primary objective, with the
immediately reappointed John Barnard as technical direc-
drivers’ championship very much a secondary aim). Frank
tor and re-established GTO. ‘If you want to make pasta,
Williams had regarded Brazilian Ayrton Senna as the best
then you have to be in Parma. I want to make a sophis-
driver around and now Senna was keen to move to Williams,
ticated F1 project, so I want to be involved in England.’6
which he did, partnered by Damon Hill for the 1994 season.
With an Englishman heading up design, he followed
Tragically, at the San Marino Grand Prix on 1 May 1994,
this up with the appointment of a Frenchman, Jean Todt,
Senna was killed in an accident, an event that not only
to handle the overall management of the team. Both
devastated the Williams’ team but the sport as a whole.
appointments were clear signals to all involved in Ferrari
In 1995, the Benetton team had eclipsed Williams.
that things were going to change. Todt had no prior expe-
Benetton had developed a car using many of the tech-
rience in F1 but had led a successful rally and sports car
nological innovations used by Williams (with the help of
programme at Peugeot.
ex-Williams designer, Ross Brawn). In addition, Renault
The physical separation between design and develop-
had ended exclusive supply to Williams to also provide
ment in Guildford and the racing operation in Maranello
Benetton with their engines. In 1995, Benetton and
was not a sustainable arrangement and Barnard and
Michael Schumacher broke the domination of Williams.
Ferrari again parted company in 1996. At the end of
1996, Ferrari recruited double world champion Michael
Schumacher from the Benetton team and followed this
Ferrari: the return to glory: 1999–2004 by recruiting two further individuals from Benetton: Rory
In the 1980s, legendary F1 team Ferrari were struggling, Byrne, who had overall responsibility for designing the
only winning six races in the period from 1984 to 1988. A car, and Ross Brawn who managed the entire technical
key problem was that new developments in aerodynamics operation. With Barnard and his UK operation gone,
and the use of composite materials had emerged from the Byrne and Brawn faced the task of building up a new
UK’s motorsport valley. Ferrari had traditionally focused
on the engine as their competitive advantage, which 6
Interview in Autosport, 10 September 1992, p. 30.

587
The Formula 1 constructors

design department in Maranello. One of the most impor- to be frozen for three years from 2007. In many ways, an
tant tasks for the new team was to take advantage of the engine change should have benefited Ferrari, but they
fact that Ferrari made their own engines, by integrating struggled to get the performance in the early part of the
the design of the engine, chassis and aerodynamics as season. Towards the end of the 2006 season, Michael
early in the process as possible. Ferrari’s historic empha- Schumacher announced his intention to retire, Jean Todt
sis on the engine was replaced by a focus on integration, was promoted to CEO, highly experienced engine director
summarised by Ross Brawn: ‘it’s not an engine, it’s not an Paolo Martinelli moved to a job with Fiat and Ross Brawn
aero-package it’s not a chassis. It’s a Ferrari’.7 announced he was taking a sabbatical.
At this time, Ferrari also entered into a long-term part-
nership with Shell to provide both financial and techni-
Red Bull Racing: a new formula for
cal support to the team, a departure for Ferrari who had
previously worked with Italian petroleum giant Agip. In
success: 2010–13
these kinds of arrangements, Ferrari led a trend away On Monday 15 November 2004, Ford announced that it
from selling space on cars to long-term commercial and was selling the Jaguar Racing F1 team to the Red Bull bev-
technological arrangements, with coordinated marketing erage company for a ‘nominal sum’ and in exchange Red
strategies for commercial partners to maximise the bene- Bull agreed to underwrite the team for at least three years
fits of their investments. securing around 350 jobs at their facility in Milton Keynes.
This rejuvenated team provided the basis for Michael Nine years later, Sebastian Vettel secured a fourth consec-
Schumacher’s dominance of F1. In 1999, they won their utive world championship (making him the youngest-ever
first constructors’ championship for 12 years. In 2000, double, triple and quadruple world champion) and, along
Ferrari secured both championships, it having been 21 with it, brought a fourth consecutive constructor’s cham-
years since their last drivers’ world championship. In 2002, pionship to the team. The man behind the purchase of
Schumacher and Ferrari were so dominant that a series of Jaguar Racing was Dietrich Mateschitz, an Austrian entre-
regulation changes were introduced to try and make the preneur who had founded Red Bull Gmbh in 1987, and
racing more competitive. created a new category in beverages – energy drinks.
Schumacher’s talent as a driver and a motivator of the Mateschitz had focused on building the Red Bull brand
team (he learnt Japanese to converse with an engine tech- by association with a wide range of sports, including more
nician recruited from Honda) was critical, but another key extreme sports such as mountain biking, BMX biking, air
aspect in Ferrari’s advantage for 2002 had been their rela- racing, skydiving – and motor racing.
tionship with Bridgestone tyres (other leading teams used Red Bull’s first involvement with Formula 1 came in
Michelin tyres) who designed and developed their com- 1995 when they acquired a stake in the Sauber Team. In
pounds specifically for Michael Schumacher in a Ferrari. 2001, they launched the Red Bull Junior team under the
Despite stronger competition from Williams, McLaren and guidance of former sportscar racer Dr Helmut Marko. Red
Renault in 2003 Ferrari won both drivers and constructors Bull Juniors support and develop young drivers with the
titles and repeated the feat again in 2004, giving them intention of bringing new talent into Formula 1. In 2004,
a record-breaking sixth consecutive constructors’ title the scheme had 15 drivers under contract, including a
and Michael Schumacher a seventh world championship, 16-year-old German, Sebastian Vettel, who Red Bull had
breaking Fangio’s record which had stood since 1957. first supported driving karts when he was 12 years old.
In 2005 and 2006, the competition became much In 2001, following a disagreement over driver selec-
stronger and, despite being competitive, Ferrari lost the tion, Mateschitz sold his stake in Sauber to Credit Suisse.
drivers’ and constructors titles to Renault F1 Team (for- In 2004, keen to find a drive for Red Bull Junior driver
merly Benetton). Renault benefited from the rising tal- Christian Klien, he entered into discussions with Jaguar
ent of Fernando Alonso who proved himself a match Racing and found that Ford were looking to sell the team,
for Schumacher in both driving and team motivation. In he made the purchase in November 2004.
2005, changes in the regulations meant that tyres were Initially, he intended for the incumbent management
required to last for the whole race, which often bene- team – Tony Purnell and Dave Pitchforth – to run the team,
fited the Michelin technology used by Renault and left but a dispute over drivers for 2005 led to their leaving the
Ferrari struggling towards the end of the race on their company and being replaced by Christian Horner as team
Bridgestone tyres. In 2006, a more drastic change to the principal for the start of 2005. At only 31 years old, Horner
regulations meant that the constructors had to shift from was a surprising choice, particularly in terms of his age and
3.5 litre V10 engines to smaller V8’s, with engine design having had no F1 experience prior to this appointment.
Mateschitz wanted Red Bull Racing to display the
7
Quote from M. Jenkins, K. Pasternak and R. West (2008) Perfor-
non-conformist values he felt were central to the Red Bull
mance at the Limit: Business Lessons from Formula 1 Motor Racing. brand. At the first European race of 2005, the Red Bull
2nd edn. Cambridge, UK: Cambridge University Press. p. 48. Energy Station made its first appearance. An immense

588
 The Formula 1 constructors

three-storey hospitality centre which needed 25 people and encourages them, they feed off him, and he feeds
to assemble it and 11 trucks to transport it, it redefined off them.’
the standard in the F1 Paddock. In contrast to all the other Although Horner is technically the man in charge he
teams, the Red Bull facility was open access to everyone and Newey run the team together: ‘Adrian very much has
within the paddock, it belted out loud music and served an input into driver choice, he’s involved in all the major
drinks and snacks for all; it was particularly popular with decisions. Dietrich will have the final say on the big things –
the F1 media who could now use the facility to unwind or choice of driver, engine, strategic investment – but Adrian
catch up on the gossip of the day. and I run the business day to day.’9
But, even if Red Bull liked to be non-conformist and In 2007, RBR started using Renault engines, the first
youthful, most of all, they wanted to win. Horner recog- team outside the Renault works team to do so for some
nised that a key component in bringing success to Red Bull time, Renault having won the constructors’ trophy in 2005
Racing was the recruitment of a leading F1 designer, he and 2006. Newey had previously worked with Renault
set his sights very high and, in 2005, attempted to recruit when designing the world championship winning Wil-
McLaren Chief Designer Adrian Newey, one of the elite liams FW14B. The team won their first constructors’
designers in F1 whose salary was greater than many of the and drivers’ (Sebastian Vettel) championship in 2010, it
drivers. This was a high-risk strategy. In May 2001, Jaguar seemed that all the investment had finally paid off.
Racing team principal and close friend of Newey, Bobby By the end of 2013, Red Bull Racing had grown to over
Rahal, had signed a five-year deal with Newey to secure 700 employees, and the team had enjoyed four successive
his services as technical director. However, two days later, world championship drivers’ and constructors’ champion-
Newey changed his mind and signed a further contract ships. However, the 2014 F1 season marked a change in
with McLaren up to the end of July 2005; Rahal ended up fortune for Red Bull Racing. A drive to adopt ‘clean’ tech-
leaving the team at the end of 2001. Horner enlisted the nologies had led to radical new F1 regulations for the
help of Red Bull driver David Coulthard, who had worked 2014. The engine specification moved from a 2.4 litre, nor-
with Newey at both Williams and McLaren, a meeting was mally aspirated V8 to a 1.6 litre V6 turbo-charged engine
set up and Newey was invited to Austria to meet with and new Energy Recovery Systems (ERS) were allowed
Mateschitz. In a magazine interview, Horner describes which would create a further 150 horse power through
how the deal was finalised: ‘Adrian, we’d love to have you. using kinetic and heat energy which would be stored in
Do you want to come? He stated a figure that caught my batteries and re-used to enhance car performance. At the
attention because it was about 70 per cent higher than I’d end of 2012, only three suppliers remained committed
warned Dietrich we might have to pay. I called Dietrich, he to providing F1 powerplants for 2014 – Renault, Ferrari
went quiet for a few seconds, then he said, “Let’s go for and Mercedes. In 2012, Christian Horner was concerned
it.” That’s the great thing about Red Bull. It’s his company, that these new regulations could mean a change in the
it belongs just to him and one other person in Thailand. established order: ‘What we need to be careful is that
No board meetings, no shareholders’ approvals, just an we don't make the engine and powerplant a key perfor-
instant decision.’8 mance differentiator between teams. If you end up on
The decision to bring Newey into the team was the wrong or the right powerplant in 2014, that could
undoubtedly an expensive one, but it also marked a prove crucial.’10 His comments proved to be prophetic
turn in fortunes for the team, which Horner attributes to and, in 2014, the best power unit was clearly that of the
Newey. ‘Adrian forced a change of culture on us, because Mercedes, which allowed them to take the Constructors’
the way he works is completely different. We weren’t pre- trophy, with Renault powered Red Bull Racing finishing
pared for the amount of detail he gets involved in. For in second place almost 300 points behind. At the end of
starters, he still uses a drawing board [Note: Most design 2014, Vettel announced that the was leaving Red Bull Rac-
F1 work is undertaken using computer aided design, and ing to join Ferrari. In 2015, Dietrich Mateschitz publicly
the designs are worked up on computers]. I had to do a criticised engine partner Renault: ‘Beside taking our time
deal with McLaren to release his beloved board, which and money they have destroyed our enjoyment and moti-
had followed him from Williams and is now in his office vation – because no driver and no chassis in this world can
at Red Bull Racing. In F1 nowadays a technical director is compensate for this horsepower deficit.’11
usually a technical manager, someone who chairs meet-
ings and agrees philosophy and strategic direction, but
isn’t involved in the actual architecture of the car. Adrian
draws the surfaces of the car himself and then passes that 9
S. Taylor (2012) ‘Lunch with Christian Horner’, Motorsport, 88,
over to the aerodynamicists and designers. He stimulates 1. Pp. 67–72.
10
‘Horner’s Blueprint for Formula 1’, Autosport online, 19 October
8
S. Taylor (2012) ‘Lunch with Christian Horner’, Motorsport, 88, 2012.
11
1. Pp. 67–72. Quoted in Autosport.com, 15 June 2015.

589
The Formula 1 constructors

Mercedes Benz AMG F1: the fully most effective and the team were able to secure the driv-
integrated approach ers’ championship for the next seven years (2014, 15, 17,
18, 19 and 20 for Lewis Hamilton; 2016 for Nico Rosberg)
At the Abu Dhabi Grand Prix on 12 December 2021, and the constructors’ championships for the next eight
Mercedes Benz AMG F1 became the 2021 F1 constructors’ years.
champions, a record-breaking eighth consecutive title. Paddy Lowe served as the senior technical figure until
The ‘Silver Arrows’ – named after the successful Mercedes the end of 2016 when he moved to become Chief Tech-
grand prix cars of the 1950s – had built up a dominant nical Officer of the Williams team and was replaced at
position based on a philosophy of integrating the power Mercedes by former Ferrari technical director, James
unit12 with the chassis and aerodynamic aspects of the Allison. Whereas most observers regarded Lewis Ham-
car, a concept which had been pioneered by Ferrari in ilton as the team’s lead driver, the team operated on
the late 1990s. In 2005, Mercedes Benz owners Daimler the basis that both drivers were free to race. This led to
acquired Ilmor who had previously supplied F1 engines growing tension between Hamilton and his team mate
to Mercedes; they were subsequently renamed Mercedes Nico Rosberg, who had been a boyhood rival in the jun-
Benz High Performance Powertrain (MB HPP). This acqui- ior karting leagues. The 2016 season became an intense
sition placed Mercedes on a par with Ferrari who designed battle between the two; Hamilton suffered a number of
and manufactured their own engines, as well as building mechanical failures and Rosberg proved to be the more
their own chassis. consistent and beat Hamilton to the driver’s champion-
In November 2009, Mercedes acquired the Brawn GP ship by a margin of only five points. On 2 December 2016,
F1 team led by Ross Brawn. Having been given permission five days after winning the title, Rosberg announced
by McLaren to use Mercedes’ power units, Brawn were his retirement from F1. This was a major shock to the
the 2009 World Champions. For 2010, Brawn remained Mercedes team who had extended Rosberg’s contract
as Team Principal and had persuaded former world- to the end of the 2018 season (the same time as Hamil-
champion Michael Schumacher to come out of retirement ton’s contract was due to end). However, Williams’ driver
and drive for the team with a three-year contract. Valtteri Bottas was recruited and remained with the
However, it appeared that Schumacher’s best driving days team from 2017 until 2021, to be replaced by Williams’
were behind him, and the team’s best result was fourth driver George Russell in 2022. In July 2021, after months
place in the constructors’ championship. In 2012, the team of speculation, Lewis Hamilton signed a further contract
won their first grand prix with Nico Rosberg in Shanghai. with Mercedes to keep him with the team until the end of
Towards the end of that year, Niki Lauda was appointed 2023. Hamilton was one of the few F1 world champions
as Non-Executive Chairman and credited with helping whose fame transcends the sport. In 2021, at the Russian
to secure the services of Lewis Hamilton who replaced Grand Prix in Sochi, he achieved 100 GP victories, a feat
Michael Schumacher for the 2013 season on a three-year that no driver has previously managed, the next highest
contract. Lewis had become the youngest ever drivers’ being Michael Schumacher with 91. However, Hamilton
world champion at the age of 23 in 2008.13 In early 2013, failed to achieve a record-breaking eighth drivers’ world
former Williams shareholder Toto Wolff was appointed championship in 2021 when he lost Abu Dhabi Grand
as overall head of Mercedes motorsport and Executive Prix to Max Verstappen on the very last lap, although
Director of the F1 team; both he and Lauda would take Mercedes AMG F1 were able to secure the 2021 construc-
a 40 per cent equity stake in the team. In June 2013, they tors’ world championship.
appointed former McLaren technical director Paddy Lowe
to the role of Executive Director (technical). Ross Brawn
left the team on 1 February 2014. The changing face of Formula 1
It appeared that Mercedes and MB HPP had done the
Looking at the Formula 1 constructors raises some impor-
best job of interpreting the new power unit regulations
tant questions around the challenge of sustaining success-
for 2014. Although MB HPP also supplied power units to
ful performance in a highly competitive context. How are
other teams, it was in the Mercedes chassis that it was
these teams able to sustain success after they have dom-
inated the championships? What are the different ways
12
The 2014 regulations had reduced the size of the internal com-
in which this can be achieved in different organisations?
bustion engine to 1.6 litres, but had allowed the development of
advanced hybrid technology to capture and reuse energy, thereby And how does the basis for success shift over time? These
shifting the terminology from ‘engine’ to ‘power unit’. five cases illustrate some of the challenges that organisa-
13
This was beaten by Sebastien Vettel in 2010 who was six tions face in attempting to both create and sustain com-
months younger than Hamilton at the time. petitive advantage.

590
 The Formula 1 constructors

Table 1 Summary of world champions

Year Driver Car/Engine Constructor

1950 Giuseppe Farina Alfa Romeo

1951 Juan Manuel Fangio Alfa Romeo

1952 Alberto Ascari Ferrari

1953 Alberto Ascari Ferrari

1954 Juan Manuel Fangio Maserati

1955 Juan Manuel Fangio Mercedes-Benz

1956 Juan Manuel Fangio Lancia-Ferrari

1957 Juan Manuel Fangio Maserati

1958 Mike Hawthorn Ferrari Vanwall

1959 Jack Brabham Cooper/Climax Cooper/Climax

1960 Jack Brabham Cooper/Climax Cooper/Climax

1961 Phil Hill Ferrari Ferrari

1962 Graham Hill BRM BRM

1963 Jim Clark Lotus/Climax Lotus/Climax

1964 John Surtees Ferrari Ferrari

1965 Jim Clark Lotus/Climax Lotus/Climax

1966 Jack Brabham Brabham/Repco Brabham/Repco

1967 Denny Hulme Brabham/Repco Brabham/Repco

1968 Graham Hill Lotus/Ford Lotus/Ford

1969 Jackie Stewart Matra/Ford Matra/Ford

1970 Jochen Rindt Lotus/Ford Lotus/Ford

1971 Jackie Stewart Tyrrell/Ford Tyrrell/Ford

1972 Emerson Fittipaldi Lotus/Ford Lotus/Ford

1973 Jackie Stewart Tyrrell/Ford Lotus/Ford

1974 Emerson Fittipaldi McLaren/Ford McLaren/Ford

1975 Niki Lauda Ferrari Ferrari

1976 James Hunt McLaren/Ford Ferrari

1977 Niki Lauda Ferrari Ferrari

1978 Mario Andretti Lotus/Ford Lotus/Ford

1979 Jody Scheckter Ferrari Ferrari

1980 Alan Jones Williams/Ford Williams/Ford

1981 Nelson Piquet Brabham/Ford Williams/Ford

1982 Keke Rosberg Williams/Ford Ferrari

1983 Nelson Piquet Brabham/BMW Ferrari

1984 Niki Lauda McLaren/Porsche McLaren/Porsche

1985 Alain Prost McLaren/Porsche McLaren/Porsche

(Continued)

591
The Formula 1 constructors

Table 1 Summary of world champions (Continued)

Year Driver Car/Engine Constructor

1986 Alain Prost McLaren/Porsche Williams/Honda

1987 Nelson Piquet Williams/Honda Williams/Honda

1988 Ayrton Senna McLaren/Honda McLaren/Honda

1989 Alain Prost McLaren/Honda McLaren/Honda

1990 Ayrton Senna McLaren/Honda McLaren/Honda

1991 Ayrton Senna McLaren/Honda McLaren/Honda

1992 Nigel Mansell Williams/Renault Williams/Renault

1993 Alain Prost Williams/Renault Williams/Renault

1994 Michael Schumacher Benetton/Ford Williams/Renault

1995 Michael Schumacher Benetton/Renault Benetton/Renault

1996 Damon Hill Williams/Renault Williams/Renault

1997 Jacques Villeneuve Williams/Renault Williams/Renault

1998 Mika Hakkinen McLaren/Mercedes McLaren/Mercedes

1999 Mika Hakkinen McLaren/Mercedes Ferrari

2000 Michael Schumacher Ferrari Ferrari

2001 Michael Schumacher Ferrari Ferrari

2002 Michael Schumacher Ferrari Ferrari

2003 Michael Schumacher Ferrari Ferrari

2004 Michael Schumacher Ferraro Ferrari

2005 Fernando Alonso Renault Renault

2006 Fernando Alonso Renault Renault

2007 Kimi Raikonen Ferrari Ferrari

2008 Lewis Hamilton McLaren/Mercedes Ferrari

2009 Jenson Button Brawn/Mercedes Brawn/Mercedes

2010 Sebastian Vettel Red Bull/Renault Red Bull/Renault

2011 Sebastian Vettel Red Bull/Renault Red Bull/Renault

2012 Sebastian Vettel Red Bull/Renault Red Bull/Renault

2013 Sebastian Vettel Red Bull/Renault Red Bull/Renault

2014 Lewis Hamilton Mercedes Mercedes

2015 Lewis Hamilton Mercedes Mercedes

2016 Nico Rosberg Mercedes Mercedes

2017 Lewis Hamilton Mercedes Mercedes

2018 Lewis Hamilton Mercedes Mercedes

2019 Lewis Hamilton Mercedes Mercedes

2020 Lewis Hamilton Mercedes Mercedes

2021 Max Verstappen Red Bull/Honda Mercedes

2022 Max Verstappen Red Bull/Honda Red Bull/Honda

592